An Economic Analysis of Law-Suit Insurance

Michael Adams

Chapter 7 in Economic Analysis of Regulated Markets, 1983, pp 134-147 from Palgrave Macmillan

Abstract: Abstract The aim of this paper is to provide an analysis of the effects of law-suit insurances. About 42 per cent of households in the Federal Republic of Germany own such an insurance. The total value of the premiums paid in 1980 exceeded 1.7 billion DM. This rapidly expanding business is coming under increasing attack from persons working in the legal sector. The reason for these attacks is their belief that the availability of such insurances is the principal cause of the huge increase in the number of law-suits. The rapid rise in the number of civil processes has led to the formation of increasingly long waiting lists. They constitute a threat to the functioning of the legal system and the President of the German Federal Court of Justice (Bundesgerichtshof) has already referred to these time lags as amounting to a denial of justice.1

Keywords: Risk Aversion; Subjective Probability; Insurance Market; Process Area; Constant Relative Risk Aversion (search for similar items in EconPapers)
Date: 1983
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-17099-9_7

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DOI: 10.1007/978-1-349-17099-9_7

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